Are These The First Signs Of Indian Economy Slowing Down?
This is worrying news as the auto-industry slows down with production halting and over 35000 Crores worth of cars lying unsold according the latest report in RushLane. This is about $5 billion worth of unsold inventory.
I keep up with the auto-industry news in India and for the past few months I've been hearing about a slow down through some my former colleagues and friends in the Indian automotive media.
There is a steep decline in buying sentiment currently and it is also fuelled by the fact that GDP numbers presented by the government has been quite misleading according to the latest report in ET. It seems to be around 4.5% in the last 5 years which isn't very good for an emerging economy as ours with a young population!
This is a worrying trend given the fact that the last few years have shown the government that it is prepared to meddle with the statistics by changing the data sources and methodology. Fortunately the Indian stock market is holding up alright for now.
But given the rapid growth in our population in the last 2-3 decades there's a lot of demand for jobs and not enough well paying jobs in the market for people. If people cannot earn sufficiently well enough to afford a vehicle, how will the auto-industry thrive.
I hope this situation resolves soon without spilling over into other areas. If production continues to halt regularly, it will affect the bottomline of these companies and then eventually job cuts are in order. Who will provide jobs to people if they lose it?
Only time will tell what will happen. It's a good time to build alternate sources of income if you don't have one and prepare yourself for a bumpy ride, especially if you depend on the Indian economy doing well for a stable and secure livelihood.
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Interesting...wonder if they will have a "government bailout" as we did here in the US.
If India is the fastest growing economy then how this type of news is possible...
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What a tremendous waste of resources. Hope someone gets a good deal out of this
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I wouldn’t even recommend solely focusing on alternative income streams. In recessions the key to making it through unscathed is to have a mix of hard and liquid assets(land, gold, crypto, fiat, etc.).
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With land one issue is that if its not having some sort of revenue from it like agricultural income or rental income it will be a dead investment for a long time
Yea, it’s a hard asset to liquidate and there’s upkeep/tax. In the right area though it’s great at combatting inflation.
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agree ... I am actually contemplating purchase of a small patch of land. I have been battling these concerns. Tax : yea, I had missed out that part.
If you get the right spot you’ll make back what you pay in taxes. Also I’d recommend getting something that you can rent out. In the case of land this would be something that’s farmable.
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Thanks. So I am planning to get some land which we came across. We got access to plant "Elephant Foot" & some Banana. Now planning to buy the same land. The land value is quite low and we may get the return of investment in say 3 years. Lets say worst case 5 years. Land prices are generally low due to non-existent economic activity or low to be realistic. The only trouble is there is going to be say, 10 years of lock-in period -- ie no appreciation is going to happen or sale is going to be possible. So farming becomes a mandatory activity.
I have no idea of the laws there or anything but I’d recommend finding a farmer to work with rather than doing it yourself. In the US you can rent fields to farmers or split the profits off yield. Obviously both have different risks/rewards.
EDIT: The farmer will also help to make sure you don’t ruin the soil or something. Bananas might be fine but I think then you have a longer waiting period before profitability?
Yea, doing this with cousin brother. Also a neighbour who is a farmer. So, lets say, I invest all the STEEM I earn in agriculture :-)
It takes almost 10 months for the crop to be ready to be sold. Generally its profitable. But here the agriculture is not properly organized and no one seems to be know the ROI. We did some banana planting this year and for the first time we will have some more details on the cost. ie cost like the cost for 1 banana per year, expected average return, profit etc.
The banana farming is labor intensive.
This is worrying